Trump’s policies will destroy India’s business: Report
#News Bureau January 17,2025
A Crisil report says that Trump’s trade sanctions will have a direct impact on China and India. In such a situation, China can aggressively promote exports to other Asian markets including India. That is, when China will not be able to export its goods to the American market, it will turn to other Asian countries including India.
This development is likely to make the competition tough for Indian exporters in both regional and global markets. This may slow down India’s export growth. The Crisil report says that “the heavy tariff proposed by the next President of America on Chinese goods may lead to a slowdown in the Chinese economy. To counter this, China will increase its exports to all Asian markets including India.”
The report says that if the trade tension between the US and China increases, then all the geopolitical uncertainties are going to pose a risk to the global market. These conditions are being created when India’s trade deficit has increased in this financial year. India’s imports are constantly outpacing exports. That is, India is importing more goods than exports. Due to this, Indian money is going out, while due to lagging exports, less money is coming from outside.
The report says that India’s exports remain unstable during the current financial year. While there was a steady increase in goods exports in the first quarter, it declined in the second quarter. There was a slight recovery in October 2024, but exports declined again in November and December. That is, it means that the status quo in India’s exports is maintained, whereas it should grow continuously.
After a decline of 4.8 percent in November, India’s merchandise exports fell 1 percent to US $ 38.01 billion in December 2024. This decline was due to a significant drop in diamond and jewellery exports (-26.5 percent) and oil exports (-28.6 percent). Both have declined to minus (-).
The Crisil report says that the whole situation will depend on how China will implement its export strategy after Trump. India is a very big market in Asia. In such a situation, China will probably try to keep its export policy attractive for India. It will also depend on how India will face these circumstances and what its own strategy will be.